Panel Panel discussiondiscussion

Location Outlook: what’s your destination?

Moderated by: Rabie Lamghari, May 16, 2012, Amsterdam

Traditionally, organizations primarily chose a location Traditionally, organizations primarily chose a location because of its Costbecause of its Cost--Risk profileRisk profile

2. Real estate trends

3.InfraR

isk

Cost-risk analysis

Cos

t of o

pera

tion

Lowpresence

1. Talent pool and Peer presence

Assessment dimensions

Manage riskManage risk

ILLUSTRATIVE

W1%W1%

W3%W3%

W2%W2%

Higher cost

Importance

structure (e.g., telecom)

Infrastructure (e.g., telecom)

4. Safety and security

1

5. Operating environment1

costs

6. Salaries and operating costs

Risk

Cost

Cos

t of o

pera

tion

Relative risks LowHigh

High

1 Operating environment includes legal and regulatory, labor laws, and government incentives and tax policies

Avoid riskAvoid risk

W4%W4%

W3%W3%

W5%W5%

Higher risk

With increasing maturity of global services programs, With increasing maturity of global services programs, additional factors must be consideredadditional factors must be considered

◦ Talent pool depth and breadth

◦ Cost structure◦ Environment

� Changes in business Increasing maturity� Scale

Sustainability

� Changes in business needs

� Changes in market� Changes in strategy

� Hubs, spokes, COEs� Additional capabilities� Redundant capabilities� Sourcing model

implications

� Scale� Requirements� Portfolio view

Flexibility

Role within portfolio

Best practices for helping your organization deal with Best practices for helping your organization deal with location questionslocation questions

Be realistic about scale and ramp-up rates

Although centers can operate at small scale, they tend to be less resilient. Additionally, ramp-up rates differ dramatically by location and need to be understood accordingly

Use the right data

Although you will have to make decisions without perfect data, do focus on using data which is applicable to the services industry and relevant skill sets (e.g., languages, technologies, domain knowledge)

Design for the long term

Location selection considerations need to be resilient to macro-environment changes and talent/cost sustainability challenges – new locations are an investment

Precisely define concentration concerns

Location concentration concerns can’t be meaningfully addressed without specifics – the site, the city, the country, the region? Concern for catastrophic or temporarily disruptive events?

Solve for “portfolio” instead of “footprint”

View the location portfolio as a strategic lever to balance savings and mitigate risks in global sourcing programs

SpainMorocco

Netherlands Poland

Hungary

Romania

UAE

IndiaJapan

China

Philippine

s

South AfricaBrazil

Guatemal

a

Mexico

USA

Czech Republic

Delivery Center

17 Countries | 64 Delivery Centers | 25 Languages | 56,000+ Employees

GenpactGenpact Global FootprintGlobal Footprint

Columbia

•Unparalleled diversity & depth of services•Unparalleled diversity & depth of services

•Serving 600+ clients representing 40+ industries across 17 countries

•Extensive skills range to match service range – from simple invoice processing to complex statistical modeling

17 Countries | 64 Delivery Centers | 25 Languages | 56,000+ Employees

2009 2010 2011 2012

Countries of Operation

13 14 16 17

Operating Centers

39 42 58 64

Genpact Delivery Footprint

40% Statutory: 20% 20%HR: 25% Legal: 5% Facility: 10%

Graduate / Year New legal entity setup Suitable Bldg availabilityTalent Pool Labor law CAPEXAdditional language availability Finance: 5% OPEXLabor Costs New legal entity setup IT: 10%Wage Inflation Complexity of Stat Rep IT Maturityconfidence to hire Tax: 10% Vendor competition

Key Parameters Infrastructure

Selection

Criteria -

Checklist

mobility of population With-holding tax rules CAPEXretention factors Overall tax enviroment OPEXGrowth potential Environment 20%Future outlook of labor Subsidies: 15%

Demographics 15% CIT abatementCity Population Personal Income TaxSurrounding catchment Social Security ReductionAge segmentation Training SubsidyDiversity segmentation Cash GrantsUnemployment % Hiring Cost subsidyAccessibility Subsidized RentCity LooknFeel Government: 5%Competition today Support for BPOForecasted competition Attitude towards business

Potential to support GP

Trends in location selection and Factors Trends in location selection and Factors impacting location impacting location strategystrategy

1. Evolving location models: move to a more complex set-up

a) Emergence of decoupling – front-office / back-office

b) Services evolving from transactional scope to more high end scope with stronger language dependency & complexity: Requirement for new locations onshore & nearshorelocations onshore & nearshore

c) More complex set-up: requires seamless and integrated multi-site delivery

d) Multilocation solutions becoming the norm

2. Emerging markets: India to India and China to China

3. Key challenges: Russia and APAC

4. Reshoring of activities: back from Asia to Europe

5. Decreasing focus on Labour arbitrage

Home to Outsourcing Home to Outsourcing ProfessionalsProfessionals

May 20121

Morocco, A destination of choice for your captive operations

•15 km away from Europe

•At the heart of the EMEA region

•3 hours away from major European •3 hours away from major European capitals

•On the same time zone as major EU markets

•A major player in the Mediterranean region

•Extensive fiber optic connectivity through the EMEA region

4

Morocco, A destination of choicefor shared service centers

Reduced cost structure

5

63600

10050

5100

3900

Business and management

The Moroccan education system pumps 300 000 suitabl e graduates a year in the job market

Availability and sustainability of qualified profiles

Morocco, A destination of choicefor shared service centers

120000

99000

Engineering

Medical, Dental and Public Health

Sciences and Technical Engineering

Arts, Human sciences

Economics and Law studies

6

World Classinfrastructures

Availability of qualified HR

Competitiveoperational costs

Three pillars that enable your business

Morocco, A destination of choicefor shared service centers

Strengths

Geographic proximityYoung and skilled PopulationReliable InfrastructuresExcellent progress towards free economy

A Pro business government

Dedicated/free zones(real estate, telecom)Elaborate training programsAggressive incentives programContinued support to enable growth

7

Our MissionPromote, develop, manage and sustain the dedicatedoutsourcing business parks by adopting best practices,insuring continuous improvement and making clientsatisfaction a top priority in all areas of our coresatisfaction a top priority in all areas of our corecompetency

8

Key stakeholders

The Ministery of Industry, Commerce, and new Technologies

Leads the promotion and development of foreign investments in strategic sectors: Outsourcing, automotive, Aerospace, etc.

Leverages the financial strength of CDG Group to develop and manage dedicated infrastructures for these sectors

CDG Group, Morocco’s largest institutional investor:

Eur 9 billion of managed assets

Leading partner in developing dedicated infrastructures to support the government’s effort in creating and sustaining high value industries within Morocco

MEDZ Sourcing100% subsidiary of CDG Group

The specialized arm of CDG Group in charge of developing and managing business parks dedicate to the Outsourcing arena

Manages more than 600000 sqm of office space assets

Over 70 clients out which 75% fortune 500 companies

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Promote, develop, manage and sustain the dedicated

MedZ Sourcing, your trusted partner for business space in Morocco

Mission

Promote, develop, manage and sustain the dedicatedoutsourcing business parks by adopting best practices,insuring continuous improvement and making clientsatisfaction a top priority in all areas of our core competency.

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MedZ Sourcing, your trusted partner for business space in Morocco

Handle all office space needs and allow your organization to focus on its core competenceSupport clients in their office space due diligence and need assessmentSupport clients in their facility management and planning

Approach

Support clients in their facility management and planningAccompany our clients in solving obstacle to organic developmentPlan and execute cross-city development and guarantee a seamless operation across sitesEstablish accountability in quality through SLA and stability in operationsListen to our clients through regular QBR Draw action plans for corrective measures

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Oujda shore

MedZ Sourcing, your trusted partner for business space in Morocco

The network relies on it’s :

-seamless connectivity regardless of the location (telecom, road, air, train)-proximity to airports -Proximity to universities and large human resource pools-Secured infrastructure

To allow your company to benefit from untapped potential in different regions of the country at varying cost levels while staying on the same time zone.12

A A comprehensivecomprehensive offeroffer of endof end--user servicesuser servicesuser servicesuser services

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A comprehensivetechnology parksconcept

Infrastructure Closed ParK TelecomsOffice space Parking Other

Business

services

One stop

shop

Office fit-out support

Recrutement support

Business center Other

General

services Catering TransportationKindergarten Hotels banks

Facility

services

Facility

management

Preventive &

corrective

Maintenance

Security &

safety

UtilitiesCleaning, gardening

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SECURITY AND SAFETY

24/7 security team on site (fixed and patrolling agents)Badge-based access and automated tracking

Infrastructures

trackingState of art video surveillance and motion detectionCentrally-managed alarm systemFire prevention and smoke detection

- Guaranteed safety of your people, premises and data- Compliance with your clients’ requirements in terms of physical and data segregation- No additional cost to your business since these are shared with other tenants

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A FLEXIBLE OFFICE REAL ESTATE

� Ready for output buildings� Pre-wired office space (IT room, telecom, electricity, lighting,

sanitary, Airco, etc)� Cables run through the ceiling for easy and quick

customization of office layout

Infrastructures

customization of office layout� Generator backed up electricity� Multiple lifts and emergency stairs� Motion detectors� Fire detectors� Optimized and responsible usage of energy

• Reduced implementation lead times• By default, compliance to security and safety requirements • 100% generator backed up power supply to insure flawless access to electricity • CAPEX turned into OPEX (generators and UPS)• Eased ramp up16

STATE OF THE ART TELECOM INFRASTRUCTURE

At start: 144 optic fiber sub wires go through the park with possibility of easy upgrade

Two drop off points represented by the green dots show where the private network terminates to join the national and international network

Double connection: each building is connected to

Telecoms

Double connection: each building is connected to the drop off points from two separate ends

Double Interconnection: each drop off point is connected with national and international network via two separate channels

• Access to latest telecom technologies without CAPEX investments (i.e. VOIP) • Low telecom costs contribute to your business’s competitiveness and your ability to close more business• Redundancy provide a built-in backup solution to secure continuity of service 17

AROUND THE CLOCK FACILITY MANAGEMENT

• 24/7 Maintenance services for the premises and equipment to insure reliability

• A 360° Computer Managed Maintenance System

• Preventive and corrective maintenance

FacilityManagement

• Great opportunity to focus on your core business and let us manage your facility and utilities• Onsite access to technical assistance in case of issues or caused outage

• Preventive and corrective maintenance• Central Helpdesk for incoming queries• Online access to client account and information

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A VARIETY OF CATERING SERVICES

• No need to dedicate production office space to catering or coffee breaks• Low price makes the service accessible to you employees• Enough capacity to cover your actual and future needs• Variety in menus and concepts to allow

Catering

• Variety in menus and concepts to allow employees to try different things different days• On premise VIP catering for your senior management or client visits saves time and provides convenience

� Internationally branded Food courts� Large company canteen � VIP restaurant

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WELCOME AND SUPPORT DESK TO INVESTORS

A number of administrative desks setup onsite to provide direct and fast support to investors and exisitng tenants

- Government representatives

One-stop-shop

- Government representatives- Regional Investment Center- Social Security- Government Training and Professional Education

(OFPPT)- Recruitment support and training subsidies through

ANAPEC

• Keywords: • -Speed• -Proximity• -Accuracy

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Kindergarten

Business center

ParkingDedicated parking areas24/7 security and Surveillancesécurisées par un contrôle d’accès

-At the heart of the park

-Meeting rooms-Conférence rooms-Reception & Catering areas

Services

Kindergarten

Transportation

Banks

Shops

-Public transportation (Buss, Train, Tram)-Branded transportation fit to your needs

-Majors Banks represented-Proximity and enriched services

-Kiosks, super market, cafés …

-At the heart of the park-Sufficient capacity-Extended working hours

Sport & Leisure

-Provides a work-life-balance type of environment-enhances employee retention and overall satisfaction21

Already on-board

OUJDA SHORE

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